Cuộc họp công bố kết quả kinh doanh Q2 2026 của Valens Semiconductor (VLN): Nâng dự báo doanh thu nhờ nhu cầu AV

Tóm tắt chính

• Valens Semiconductor đã báo cáo doanh thu quý 2 năm 2026 đạt 18,1 triệu USD, cao hơn mức dự báo của công ty là 17,2 triệu USD đến 17,6 triệu USD. Doanh thu tăng so với mức 16,9 triệu USD trong quý 1 năm 2026 và 17,1 triệu USD trong quý 2 năm 2025.
• Biên lợi nhuận gộp theo GAAP đạt 61,5%, nằm trong khoảng dự báo từ 60% đến 62%. EBITDA điều chỉnh ghi nhận mức lỗ 4,2 triệu USD, khả quan hơn mức lỗ dự báo từ 4,9 triệu USD đến 4,4 triệu USD của công ty.
• Doanh thu Mảng kinh doanh Đa ngành đạt 13,1 triệu USD, nhờ nhu cầu đối với các dòng chipset VS100, VS3000 và VS6320. Doanh thu mảng Ô tô đạt 5,0 triệu USD.
• Thiết kế tham chiếu video 4K và USB3 dựa trên chipset VS6320 đã mang lại hàng triệu USD đơn đặt hàng từ nhiều khách hàng. Một số khách hàng đã hoàn thành giai đoạn lấy mẫu và kiểm định chất lượng, đồng thời bắt đầu bước vào giai đoạn sản xuất quy mô lớn.
• Cả bốn dự án thắng thầu thiết kế ô tô sử dụng dòng chipset VA7000 đều đang tiến triển theo đúng kế hoạch. Ban lãnh đạo kỳ vọng doanh thu từ các chương trình này sẽ bắt đầu tăng trưởng trong năm 2027, với những cơ hội lớn hơn gắn liền với giai đoạn sản xuất quy mô lớn tiếp theo.
• Valens đã nâng dự báo doanh thu cả năm 2026 lên khoảng 78 triệu USD đến 81 triệu USD, so với mức 75 triệu USD đến 77 triệu USD trước đó. Theo ban lãnh đạo, điểm trung bình của khoảng dự báo này tương ứng với mức tăng trưởng 13% so với cùng kỳ năm ngoái.

Kết quả tài chính cốt lõi

Biên lợi nhuận gộp của Mảng kinh doanh Đa ngành đạt 69,2%, so với 70,8% trong Q1 2026 và 67,8% trong Q2 2025. Biên lợi nhuận gộp mảng Ô tô giảm xuống 41,5% từ mức 46,2% trong quý trước và 50,5% so với cùng kỳ năm trước, chủ yếu do chi phí trung tâm thử nghiệm phát sinh thêm để ưu tiên và hỗ trợ các yêu cầu sản xuất.

Hiệu quả kinh doanh và hoạt động

Mảng Âm thanh - Hình ảnh và Kinh doanh Đa ngành

Mảng Âm thanh - Hình ảnh tiếp tục là nền tảng kinh doanh cốt lõi. Tăng trưởng quý 2 chủ yếu nhờ dòng chipset VS100 hiện hữu và VS3000, hỗ trợ mở rộng tín hiệu HDMI 2 không nén qua cáp mạng.

Valens cũng ghi nhận đà tăng trưởng tiếp tục của chip mở rộng USB 3.2 VS6320. Các sản phẩm mới tích hợp chipset tiên tiến của công ty đã tiếp cận thị trường thông qua các nhà sản xuất như Crestron và Extron. Barco đã chọn chipset HDBaseT của Valens cho bộ thiết bị ClickShare USB-C Extension over CAT, giúp mở rộng danh mục ClickShare với kết nối có dây.

Valens đã phát triển một thiết kế tham chiếu kết hợp VS6320 với chip đi kèm để truyền tín hiệu USB3 và video 4K qua một dây cáp duy nhất. Chip đi kèm được các khách hàng ODM mua, do đó thiết kế tham chiếu hiện tại không làm thay đổi giá bán trung bình (ASP) hay biên lợi nhuận gộp của Valens. Ban lãnh đạo cho biết giải pháp này đã mang lại hàng triệu USD đơn đặt hàng, với một số khách hàng đã bắt đầu đi vào sản xuất quy mô lớn.

Công ty cũng đang phát triển một sản phẩm đơn chip trong tương lai giúp tích hợp cả tính năng USB và video 4K. Ban lãnh đạo cho biết điều này có thể đơn giản hóa thiết kế hệ thống, giảm số lượng linh kiện và hạ thấp chi phí, nhưng chưa đưa ra ngày ra mắt cụ thể.

Mảng Ô tô

VA7000, được Valens mô tả là chipset đầu tiên tuân thủ tiêu chuẩn MIPI A-PHY, tiếp tục giữ vai trò trung tâm trong chiến lược mảng ô tô của công ty. Valens đã giành được bốn dự án thắng thầu thiết kế A-PHY, và ban lãnh đạo cho biết cả bốn chương trình đều đang tiến triển theo đúng kế hoạch.

Valens đã giao chip cho các nhà cung cấp Cấp 1 (Tier 1) chuyên sản xuất các bộ điều khiển điện tử. Ban lãnh đạo cho biết tiến độ sản xuất còn lại phụ thuộc vào quy trình ra mắt xe diện rộng hơn và sự phối hợp giữa các bên tham gia khác trong ngành ô tô. Doanh thu từ bốn chương trình dự kiến sẽ bắt đầu tăng tốc trong năm 2027, tiếp nối bằng đóng góp có khả năng lớn hơn khi sản lượng sản xuất tăng lên.

Công ty cũng đang tham gia vào các quy trình đánh giá bổ sung với nhiều nhà sản xuất thiết bị gốc (OEM). Dean Martin sẽ đảm nhận vị trí Trưởng bộ phận kinh doanh Ô tô có hiệu lực từ ngày 1 tháng 9.

Dự báo của ban lãnh đạo

Ban lãnh đạo lý giải triển vọng cả năm khả quan hơn chủ yếu nhờ việc tăng cường ứng dụng VS3000 và VS6320 trong các sản phẩm của khách hàng, thay vì sự đóng góp từ bốn chương trình ô tô dự kiến bắt đầu tạo ra doanh thu vào năm 2027.

Rủi ro và các điểm cần theo dõi

• Các chương trình ô tô có chu kỳ phát triển và sản xuất kéo dài nhiều năm. Dù Valens đã hoàn thành và giao phần việc của mình cho bốn chương trình hiện tại, việc ra mắt xe vẫn phụ thuộc vào các nhà cung cấp Cấp 1 (Tier 1), các nhà sản xuất ô tô và các yếu tố khác trong quy trình sản xuất.
• Biên lợi nhuận gộp mảng ô tô giảm xuống 41,5% do các chi phí phát sinh thêm tại trung tâm thử nghiệm. Ban lãnh đạo cho biết áp lực liên quan đến công suất có thể vẫn tiếp diễn trong thời gian tới.
• Valens vẫn tiếp tục thua lỗ trong Q2, với lỗ ròng GAAP là 8,1 triệu USD và lỗ EBITDA điều chỉnh là 4,2 triệu USD.
• Tiền, các khoản tương đương tiền và tiền gửi ngắn hạn giảm xuống 83,4 triệu USD từ mức 86,1 triệu USD vào cuối Q1, trong khi hàng tồn kho tăng lên 12,5 triệu USD từ mức 10,9 triệu USD.

Điểm nhấn phiên Hỏi & Đáp với chuyên gia phân tích

• Thiết kế tham chiếu VS6320: Ban lãnh đạo làm rõ rằng các khách hàng ODM tự mua chip video 4K đi kèm và hoàn thiện hệ thống cuối cùng. Valens cung cấp VS6320 cùng với giải pháp phần mềm, do đó giải pháp hiện tại không ảnh hưởng đến giá bán trung bình (ASP) hay biên lợi nhuận gộp của công ty.
• Lộ trình sản phẩm tích hợp: Valens có kế hoạch kết hợp các tính năng USB và video 4K trong một giải pháp đơn chip tương lai. Hiện tại, khách hàng đang sử dụng giải pháp triển khai tham chiếu của công ty cùng với chip đi kèm từ bên thứ ba.
• Cột mốc sản xuất mảng ô tô: Valens cho biết đã hoàn thành việc giao các lô chipset cho những nhà cung cấp Cấp 1 đối với bốn chương trình VA7000. Sự tự tin của công ty vào đà tăng trưởng năm 2027 dựa trên tiến độ của các nhà cung cấp Cấp 1 hướng tới dây chuyền lắp ráp của nhà sản xuất ô tô.
• Lý do nâng dự báo năm 2026: Ban lãnh đạo cho biết việc tăng dự báo được thúc đẩy bởi sự ứng dụng rộng rãi hơn của VS3000 và VS6320 trên các sản phẩm của khách hàng, bao gồm các sản phẩm từ những nhà sản xuất AV chuyên nghiệp lớn.
• Cơ hội từ Barco: Ban lãnh đạo xem việc Barco bổ sung kết nối có dây vào dòng sản phẩm ClickShare là minh chứng cho thấy nhu cầu tiếp tục duy trì đối với các giải pháp có dây hiệu năng cao.

Toàn văn Biên bản Cuộc họp Báo cáo Kết quả Kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Valens Semiconductor's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Thank you. I would now like to turn the conference over to Michal Ben Ari, Investor Relations Manager. Please go ahead.

Michal Ben Ari

Thank you, and welcome, everyone, to Valens Semiconductor's Second Quarter 2026 Earnings Call. With me today are Yoram Salinger, Chief Executive Officer; and Karine Pinto-Flomenboim, our new Chief Financial Officer. Earlier today, we issued a press release that is available on the Investor Relations section of our website under investors.valens.com.

As a reminder, today's earnings call may include forward-looking statements and projections, which do not guarantee future events or performance. These statements are subject to the safe harbor language in today's press release. Please refer to our annual report on Form 20-F filed with the SEC on February 25, 2026, for a discussion of the factors that could cause actual results to differ materially from those expressed or implied. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events or changes in strategy.

We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business, and you can find reconciliations of these metrics within our earnings release.

With that, I will now turn the call over to Yoram.

Yoram Salinger

Thank you, Mike. Hello, everyone, and thank you for joining us, and welcome to our new CFO, Karine Pinto-Flomenboim, who brings with her extensive financial and operational leadership experience from both public and private technology companies. We are very happy to have you here with us.

Since joining Valens, I spent a lot of my time with our teams, our customers and our partners. And what has struck me most is the depth of technology we've built and how directly that translates into customer adoption from audio-video products shipping today to automotive design wins that are advancing towards production.

We provide high-performance chipsets that are in demand across industries because they offer OEMs a foundation upon which they can build the innovations of the future. Our technological leadership, combined with our growing commercial momentum, give me confidence in our ability to capitalize on many opportunities that lay ahead. I'll speak more about how this impacts our full year revenue towards the end of my remarks.

I'm happy to share that this quarter, we exceeded the top end of our revenue guidance at $18.1 million. GAAP gross margin for the second quarter came in at 61.5%, well within our guidance, and adjusted EBITDA was a loss of $4.2 million, lower than anticipated compared to our guidance.

During the remainder of my remarks, I'd like to highlight the key developments across our business, and I'll start with Audio-Video.

Audio-Video continues to be the core foundation of our business. Our activities here continue to expand steadily and the momentum we saw this quarter reflects continued customer adoption and commercial traction across our chipset portfolio. The revenue growth this quarter came primarily from 2 chipsets, our legacy VS100 family and our cutting-edge VS3000. We are encouraged that the market continues to find value in our VS100, the first generation of HDBaseT chipsets.

For customers looking for next-generation AV platforms, we are happy to see that they are increasingly choosing our VS3000, the only solution for uncompressed HDMI 2 extension over widely deployed category cables. In addition, we saw continued momentum building from our VS6320 chip, which extends USB 3.2. We expect integration of those chipsets to grow as more OEMs adopt higher-resolution video and more advanced USB protocols into their designs.

In Q2, we saw additional products hit the market based on our most cutting edge chips, including from leading AV manufacturers, Crestron and Extron. Adoption by 2 top-tier AV manufacturers like these is exactly the kind of commercial traction that turns technology leadership into recurring revenue and give us confidence in continued growth from these products as we move further into 2026.

Beyond these newer products, our broader Audio-Video portfolio also continued to perform well. During the quarter, we announced that Barco selected our HDBaseT chipset to power its new ClickShare USB-C Extension over CAT kit. Barco is one of the most recognized names in collaboration technology and the ClickShare product is known for its wireless connectivity.

The company's decision is a clear signal of market demand for higher performance wired connectivity and of Valens's position as a leader in this space. We see wins like this as further validation that our technology continues to add value as collaboration systems evolve.

At this point, I'd like to mention an important initiative we undertook aimed at converting our technology into new revenue opportunities. When I took the helm at Valens, we quickly established an internal task force focused on identifying new opportunities that could be pursued with minimal incremental R&D investment beyond the chip we are currently selling and with accelerated time to market. The team exceeded my expectations.

One of the best examples came from our VS6320 with software enhancement, we created a new offering that addressed a clear market need. Rather than simply selling the chip, Valens developed a joint reference design for USB3 and 4K video by combining the VS6320 with a companion chip and introduced it to leading ODMs customers. We also work with those customers to design firmware tailored to their specific needs.

The company has already seen millions of dollars in bookings across multiple customers, several of which have already progressed to sampling, completed qualification and are now beginning volume production. This is an elegant production-ready solution for extending both USB3 and 4K video. It also provides a clear bridge to the next step of our road map.

We're currently developing a new single-chip solution that will integrate these capabilities into one package. Instead of pairing the VS6320 with companion chip from other vendors, OEMs will be able to achieve the same functionality with a single device, simplifying system design, reducing component count, lowering cost and streamlining integration. The strong market interest in our USB3 and 4K reference design reinforces our conviction that the chip's integrated feature set will address a real and growing customer need.

Before I move to our Automotive business, I'd like to mention our presence at the InfoComm trade show, one of the marquee events in the pro AV industry, which took place in Las Vegas in June. Both the VS3000 and the VS6320 generated strong interest from OEMs, ODMs and ecosystem partners. Throughout the show, we held a large number of strategic meetings that resulted in new business opportunities, expanded engagements and a robust pipeline of follow-up activities. Overall, the event further strengthened our confidence in our Audio-Video strategy and growing demand for our technology and our ability to translate that demand into future design wins and revenue growth.

Let's turn now to the automotive industry. I'd like to start this section with the exciting news that we are welcoming Dean Martin as the new Head of Automotive business unit, effective on September 1. I had the pleasure of working with Dean for more than a decade at Redmond later acquired by Harman and saw firsthand his exceptional ability to turn innovative technologies into significant commercial success. Dean has a track record of securing major design wins, leading global automakers and building the customer relationships needed to support the long-term growth. And at that note, I'd like to thank Adar Segal, who is stepping down from his position for his significant contribution to Valens over the recent years.

Now turning to our performance in Automotive during Q2. As you know, this industry represents one of the most important long-term growth opportunities for Valens. As vehicles add more cameras, radars and other sensors to support ADAS and autonomous driving, the industry needs a new class of high-performance, reliable, standardized connectivity. We believe Valens is well positioned to become a leading provider of that connectivity for the years to come.

At the center of this opportunity is our VA7000 chipset, which offers high-performance connectivity for cameras and radars using ADAS and autonomous driving. The VA7000 is the first chipset on the market to comply with the MIPI A-PHY standard. We now have 4 design wins for our A-PHY chipsets, and one of our primary focus is on executing those programs successfully. I'm pleased to say that all 4 projects are progressing according to plan, and our teams are working closely with customers to support their development towards production.

As a reminder, Automotive programs follow long development and production cycles, often several years from design wins to volume production, but we expect to see revenues from these projects ramping up during 2027. While initial revenue represents an important milestone, the larger opportunities will develop as these programs advance into volume production over time. We continue to participate in several evaluation processes at various stages with multiple OEMs, providing additional opportunities to expand our design wins portfolio.

To conclude, we delivered a strong execution during the past quarter. Building on the continued strength of the professional AV foundation, we also made meaningful progress across our Automotive programs while our technology leadership continues to translate into growing commercial momentum, positioning us well for future growth.

As a result of our strong first half performance and the visibility we now have into the remainder of the year, we are raising our full year revenue guidance to between $78 million and $81 million, up from our previous guidance range of $75 million to $77 million. This would mark 13% year-over-year growth at the midpoint of our guidance. Our updated guidance reflects the strength of our current customer programs, improving revenue visibility and confidence in our ability to execute during the second half of 2026.

And on that note, I'll turn the call over to Karine to discuss our financial performance in more detail.

Karine Pinto-Flomenboim

Thank you, Yoram. And before I dive into the financials, I'd like to say how excited I am to be joining Valens and to participate in my first earnings call as CFO. As this is my first week in the role, I'll be brief on qualitative observations today, but I look forward to engaging more deeply with all of you in the quarters ahead.

Now let's dive into our second quarter 2026 results. We achieved quarterly revenue of $18.1 million, which exceeded our guidance of between $17.2 million to $17.6 million. This compares to revenue of $16.9 million in Q1 2026 and $17.1 million in Q2 2025.

The Cross-Industry Business, or CIB, accounted for $13.1 million or approximately 70% of total revenue, while Automotive contributed $5 million or approximately 30% of total revenue this quarter. This compares with Q1 2026 revenue of $11 million from CIB and $5.9 million from Automotive, which represented approximately 65% and 35% of total revenue, respectively. It also compares to Q2 2025 revenue of $12.8 million from the CIB and $4.3 million from Automotive, representing 75% and 25% of total revenue, respectively.

Q2 2026 gross profit was $11.1 million compared to $10.5 million in Q1 2026 and compared to $10.8 million in Q2 2025.

Q2 2026 gross margin was 61.5% compared to our guidance of between 60% and 62%. This compares to a Q1 2026 gross margin of 62.2% and Q2 2025 of 63.5%. On a segment basis, Q2 2026 gross margin from the CIB was 69.2% and gross margin from Automotive was 41.5%. This compares to a Q1 2026 gross margin of 70.8% and 46.2%, respectively, and to Q2 2025 gross margin of 67.8% and 50.5%, respectively. The decrease in gross margin in Automotive compared to Q1 2026 was mainly due to additional testing facility expenses incurred to prioritize and support production requirements. Non-GAAP gross margin in Q2 2026 was 64.3%, which compares to 65.2% in Q1 2026 and 67.2% in Q2 2025.

Operating expenses in Q2 2026 totaled $19.1 million compared to $19.4 million in Q1 2026 and $18.2 million in Q2 2025. Research and development expenses in Q2 2026 totaled $10.1 million compared to $10.3 million in Q1 2026 and $10.2 million in Q2 2025. SG&A expenses in Q2 2026 were $9 million compared to $9.4 million in Q1 2026 and $8.9 million in Q2 2025.

GAAP net loss in Q2 2026 was $8.1 million compared to a net loss of $8.3 million in Q1 2026 and a net loss of $7.2 million in Q2 2025. Adjusted EBITDA in Q2 2026 was a loss of $4.2 million, better than the guidance range of a loss between $4.9 million and $4.4 million. This compares to an adjusted EBITDA loss of $5.5 million in Q1 2026 and an adjusted EBITDA loss of $4 million in Q2 2025.

GAAP loss per share in Q2 2026 was $0.08, the same as in Q1 2026 and compared to a loss of $0.07 for Q2 2025. Non-GAAP loss per share in Q2 2026 was $0.04 compared to a loss of $0.05 in Q1 2026 and a loss of $0.04 in Q2 2025. The difference between GAAP and non-GAAP loss per share was mainly due to stock-based compensation as well as depreciation and amortization expenses.

Now turning to the balance sheet. We ended Q2 2026 with cash, cash equivalents and short-term bank deposits totaling $83.4 million and with no debt. This compares to $86.1 million at the end of Q1 2026 and $92.6 million at the end of Q4 2025. Our working capital at the end of Q2 2026 was $88.9 million compared to $91.3 million at the end of Q1 2026 and $95.7 million at the end of Q4 2025. Our inventory as of June 30, 2026, was $12.5 million, an increase from $10.9 million on March 31, 2026, and $10.1 million on December 31, 2025.

Now I would like to discuss our guidance for the third quarter of 2026. We expect Q3 2026 revenue to be in the range of $21.3 million to $21.7 million. We expect gross margin for Q3 2026 to be in the range of 60% to 62%, and we expect an adjusted EBITDA loss for Q3 2026 between $3.4 million and $2.8 million loss. As Yoram said earlier, we are proud to raise our full year guidance between $78 million to $81 million. It's certainly an encouraging start to my time at Valens, a reflection of the team's strong execution.

I'll now turn the call back to Yoram for his closing remarks before opening the call for Q&A.

Yoram Salinger

Thank you, Karine. I'm happy that we were able to raise our full year guidance. This reflects the progress we are making across our core businesses, both in the established Audio-Video unit and the high-growth potential Automotive offering. With our differentiated technology, strong balance sheet and focus on our core markets, we're well positioned to capitalize on the opportunities ahead and drive meaningful growth, not just in 2026, but beyond as well.

With that, I'll now open the call to answer your questions. Operator?

Operator

[Operator Instructions] And your first question comes from Quinn Bolton with Needham & Company.

Phần hỏi đáp

Quinn Bolton

Welcome, Karine. I wanted to start on the new reference design, Yoram, that you mentioned in the script. One, can you just give us a little bit more detail on what that solution involves with the VS6320 and what type of companion chip did you integrate into that solution? And then sort of a related question, as you look to bring that companion chip into an integrated solution with the 6320, how does that affect ASP and margin for that new solution?

Yoram Salinger

So as you probably know, our part in the reference design is the 6320 and a software implementation that enables a companion chip running 4K video to coexist over a single cable in order to transmit video in parallel to USB.

As we said in the script, this is getting a ton of traction from ODMs and it already generated bookings of millions of dollars. And basically, it doesn't affect the gross margin and the ASP because we are not the one selling the end product.

Quinn Bolton

I guess when you mentioned you were getting to an integrated solution, would you bring that functionality into a chip designed by Valens? Or would it just be a solution where you buy the companion chip and pass it through as part of a solution, but it's not something that really affect -- you're not designing a new chip? Or are you going to design a new chip with that companion chip functionality integrated into the 6320?

Yoram Salinger

So that's a very good question. The companion chip is going to be bought by the ODMs who is eventually going to design and build the system and sell it to the market.

You're right about the intent of having a solution to be introduced later in coming years where we would integrate the 2 capabilities, 4K video alongside with the USB kind of 6320 into one chip, and that's kind of a road map plan for us. But for now, it's ODMs that we have built a reference implementation for them. They're buying the companion chip and they build the PCB in order to get it to the market.

Quinn Bolton

Understood. Got it. And then, you already mentioned that all 4 of the VA7000 wins are progressing towards initial production in 2027. That's still potentially about a year away. Can you give us a sense what are the key milestones left on the time line to achieving start of production on those programs? Are there major milestones? Or do you feel like most of those milestones have now been met? Just trying to get a sense of what the challenge is or what the next big steps are for those 4 Auto designs.

Yoram Salinger

So I'm proud to say that our piece in that very complex puzzle has been completed and delivered. So we have delivered chips to the Tier 1s who are building the ECUs in order to get into the manufacturers or the OEMs, the carmakers to build the car. So our part in that has been completed and done in a very effective manner.

Obviously, launching cars is a complex task, and it takes a few other elements of the car industry to get together at the same time in order to -- for the OEM to launch the product. So our part in that is pretty much completed. And the reason we are saying we see that moving on track is because we are working with the Tier 1, and we know that they're advancing towards releasing their piece into the assembly line of the car manufacturers, and this is what gives us the confidence.

Quinn Bolton

Excellent. And then just a last quick one for Karine. Karine, you mentioned the Auto gross margin declined in the June quarter due to some testing facility expenses. Will those expenses continue into future quarters? Or were those expenses more onetime in nature? Any thoughts on how you see the Auto gross margin moving in the third quarter would be helpful.

Karine Pinto-Flomenboim

Sure. So as we mentioned, the gross margin for this quarter was impacted by additional testing costs. But going through to next quarters, I think overall expenses, we do not expect them to change significantly. We do not know to foresee those testing costs going forward. But due to the capacity issues that we are experiencing, we assume it's pretty stable to say that they're with us for the time being.

Operator

Your next question comes from the line of Dave Storms with Stonegate Capital Partners.

Maximus Alexander-Nino

This is Maximus. I'll be asking questions for Dave this morning. Just wanted to start on the full year guide. The raise implies a pretty meaningful step-up in the second half with the 4 Automotive programs really expected to ramp in '27, should we think about the second half acceleration of 2026, primarily CIB? Or are there meaningful contributions from existing Auto businesses as well? And if you can give us a little bit more color on overall visibility that gave you the confidence to raise guidance.

Yoram Salinger

Sure. So as we stated on the call, the Automotive business is going to be impacting revenue starting 2027. The reason to increase our guidance has to do with the fact that our flagship chips, the VS3000 and the VS6320 are being designed in to [indiscernible] more products of our customers, the likes of the Crestron, the Extron, the large techs and others. So when we see the adoption increasing over time and actually more and more products are being shipped to the market, leveraging the Valens chipsets, we feel confident that our visibility and the adoption is going to stay at the same -- at least at the same level we've seen through the first 2 quarters. And therefore, we raised the guidance to reflect that demand that we see for our products.

Maximus Alexander-Nino

Great. I wanted to pivot over with Barco and I want to see if you can walk us through a little bit of how that design came in together and what the remaining rollout looks like?

Yoram Salinger

Could you repeat the question? Sorry, I didn't get your question.

Maximus Alexander-Nino

With Barco, if you were able to walk us through how that design came in together and what the remaining rollout looks like?

Yoram Salinger

So first of all, ClickShare is a flagship product of Barco, leveraging Wi-Fi. Now Wi-Fi connectivity as good as it gets, have its issues. And the idea of Barco kind of splitting the product, which is a flagship product into a wireless implementation as well as wired suggests that the wired connectivity is still there and is still there for [indiscernible]. So this decision is extremely meaningful, and this is why we've decided that if Barco is going, splitting the ClickShare back to wired alongside with wireless, okay? We need to be fair to the situation. It gives us a ton of confidence that they would be shipping this to the market in high volumes in the years to come.

Operator

And that concludes our question-and-answer session. I will now turn the conference back over to Yoram for closing comments.

Yoram Salinger

Thank you for joining us today and for your continued interest in Valens Semiconductor. We look forward to speaking with you again next quarter. Goodbye.

Operator

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.